UMKC Marketing 324

Marketing
The performance of activities that seek to accomplish an organizations objectives be anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client
Selling function
promoting the product
Advertising
any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor
Customer satisfaction
the extent to which a firm fulfills a customers needs, desires, and expectations
For profit
profit seeking businesses
Non profit
is an organization that uses surplus revenues to achieve its goals rather than distributing them as profit or dividends
Standardization
sorting products according to size and quality
Marketing concept
the idea that an organization should aim all its efforts at satisfying its customers-at a profit
Customer needs
the basic forces that motivate a person to do something
Difference between:
target marketing & mass marketing
Target marketing – a marketing mix is tailored to fit some specific target customers

Mass marketing – the typical production-orientated approach that vaguely aims at everyone with the same marketing mix

4 P’s
Product
Price
Place
Promotion
Marketing mix
the controllable variables that the company puts together to satisfy a target group
Channel of distribution
any series of firms or individuals who participate in the flow of products from producer to final user or consumer
Packaging
promoting, protecting, and enhancing the product
Personal Selling
direct spoken communication between sellers and potential customers
Marketing stagey
specifies a target market and a related marketing mix (big picture of what a firm will do in some market
Marketing plan
a written statement of marketing strategy and the time related details for carrying out the strategy
Marketing program
blends all of the firms marketing plans into one big plan
Customer equity
the expected earnings stream of a firms current and prospective customers over some period of time
Competitive advantage
a firm has a marketing mix that the target market sees as better than a competitors mix
SWOT analysis
identifies and lists the firms strengths, weaknesses, opportunities , and threats
Product development
offering new or improved products for present markets
Market development
trying to increase sales by selling present products in new market
Diversification
moving into totally different lines of business
Market penetration
trying to increase sales of a firms present products in its present markets
What is the internet?
a system for linking computers around the world
Tech environment-the internet
Technology affecting marketing in two basic ways: opportunities for new products and for new processes
Market
a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services
Demographic dimensions
income, sex, age, family size, occupation, education, ethnicity
market segmentation (two step process)
1) naming broad product-markets
2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes
what is a good market segment?
Homogeneous (similar) within the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
Market segment
a relatively homogeneous group of customers who will respond to a marketing mix in a similar way
Clustering techniques
approaches used to try to find similar patterns within sets of data
Multiple target market approach
segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.
Combined target market approach
combining two or more submarkets into one larger target market as a basis for one strategy
Single target market approach
-segmenting the market and picking one of the homogeneous segments as the firms target market
combiners
firms that try to increase the size of their target markets by combining two or more segments
Segmenting
a process that clusters people with similar needs into a market segment
Behavior segment dimensions
behavioral needs, attitudes, consumption patterns , needs, benefits, rate of use
Geographic segmentation
geographic location and other demographic characteristics of potential customers. Region of world, size of city, country.
Influences on consumer buying decisions
economic needs, psychological variables , social influences, and the purchase situation
Motivation
the needs and wants that drives a person to do something
Perception
how we gather and interpret information from the world around us
Learning
a change in a persons thought processes caused by prior experience
Attitude
a persons point of view toward something
Lifestyle analysis
the analysis of a person’s day-to-day pattern of living as expressed in that person’s activities, interest, and opinions
psychological variables(pricing)
setting prices that have special appeal to target customers
Opinion leaders
a person who influences others
Reference group
the people to whom an individual looks when forming attitudes about a particular topic
Organizational buying
manufactures, producers of services, retailers, wholesalers, and government units. Business and organizational customers are any buyers who buy for resale or to produce other goods and services
Buying center
all the people who participate in or influence a purchase